Government Purchases $15
Consumption 90
Gross Investment 20
Consumption of Fixed Capital 5
Exports 8
Imports 12
Refer to the accompanying data (all figures in billions of dollars). GDP is:________

GDP or Gross Domestic Product is the monetary value of all the goods and services that are produced in a country during a specific period of time which is usually one year. It is an important indicator that measures the growth of and size of an economy.

GDP is calculated as follows:

GDP = C + I + G + (X - M)

Where,

C refers to consumption
I refers to investment (net)
G refers to government spending
X refers to exports
M refers to imports

The value of net investments can be calculated by deducting the consumption of fixed capital from the gross investment.

Net Investment = 20 - 5 = 15 billion

GDP = 90 + 15 + 15 + (8 - 12)

GDP = $116 billion

Government Purchases $15 Consumption 90 Gross Investment 20 Consumption of Fixed Capital 5 Exports 8 Imports 12 Refer to the accompanying data (all figures in billions of dollars). GDP is:________

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Government Purchases $15
Consumption 90
Gross Investment 20
Consumption of Fixed Capital 5
Exports 8
Imports 12
Refer to the accompanying data (all figures in billions of dollars). GDP is:________